The consumer watchdog said the investigation was triggered by concerns that warranties are often "unfair and uncompetitive".
About one in four people buy extended warranties, which cover the cost of repairs or replacement beyond the manufacturer's warranty, when they purchase electrical goods. The warranties are big money-spinners for high street electrical retailers such as Dixons and Comet.
Claudia Berg, director in the OFT's consumer and goods group, said: "Consumers buy millions of extended warranties on domestic electrical goods each year, and we want to make sure they are getting value for money. We plan a short and focused market study to find out what, if any, action is needed to make this market more competitive, to the benefit of consumers and the wider UK economy."
When purchasing a television from Moss of Bath a FREE 5 year warranty is included. Not necessarily unique, BUT unlike most other electrical retailers, Moss of Bath have their own in-house Award-Winning Service Centre, located above the store in St James' Parade.
This investment in customer care underlines our commitment to provide absolute peace-of-mind that, in the event of any equipment failure, the problem is quickly resolved. Free loan product is available in the event that the faulty product needs to be removed from the house.
Many retailers claim to provide good customer service, but very few can truly qualify their statement.
